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The Manitowoc Company Reports Third-Quarter 2024 Financial Results

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Manitowoc (NYSE: MTW) reported a third-quarter net loss of $7.0 million, or $0.20 per diluted share, with adjusted net loss of $2.9 million ($0.08 per diluted share). Orders decreased 20.0% year-over-year to $424.7 million, with backlog at $742.1 million. Net sales remained flat at $524.8 million, while adjusted EBITDA declined 21.3% to $26.2 million. Non-new machine sales reached $617.5 million for trailing twelve months. The company expects full-year adjusted EBITDA to be at the low end of guidance due to slower demand for new cranes amid U.S. election uncertainty and interest rate concerns.

Manitowoc (NYSE: MTW) ha riportato una perdita netta nel terzo trimestre di 7,0 milioni di dollari, pari a 0,20 dollari per azione diluita, con una perdita netta rettificata di 2,9 milioni di dollari (0,08 dollari per azione diluita). Gli ordini sono diminuiti del 20,0% rispetto all'anno precedente, arrivando a 424,7 milioni di dollari, mentre il portafoglio ordini ha raggiunto 742,1 milioni di dollari. Le vendite nette sono rimaste stabili a 524,8 milioni di dollari, mentre l'EBITDA rettificato è diminuito del 21,3%, pari a 26,2 milioni di dollari. Le vendite di macchine usate non nuove hanno raggiunto 617,5 milioni di dollari nei ultimi dodici mesi. La società prevede che l'EBITDA rettificato per l'intero anno si attesti all'estremità bassa delle previsioni a causa di una domanda più lenta per le nuove gru, complicata dall'incertezza legata alle elezioni negli Stati Uniti e dalle preoccupazioni sui tassi d'interesse.

Manitowoc (NYSE: MTW) reportó una pérdida neta de 7.0 millones de dólares en el tercer trimestre, o 0.20 dólares por acción diluida, con una pérdida neta ajustada de 2.9 millones de dólares (0.08 dólares por acción diluida). Los pedidos disminuyeron un 20.0% interanual, alcanzando 424.7 millones de dólares, con una cartera de pedidos de 742.1 millones de dólares. Las ventas netas se mantuvieron estables en 524.8 millones de dólares, mientras que el EBITDA ajustado disminuyó un 21.3%, totalizando 26.2 millones de dólares. Las ventas de máquinas usadas no nuevas alcanzaron 617.5 millones de dólares en los últimos doce meses. La empresa espera que el EBITDA ajustado del año completo esté en el extremo inferior de las proyecciones debido a una menor demanda de grúas nuevas en medio de la incertidumbre electoral en EE.UU. y preocupaciones sobre las tasas de interés.

매니토웍 (NYSE: MTW)는 3분기에 700만 달러의 순손실을 보고했으며, 희석주당 0.20달러에 해당하고, 조정된 순손실은 290만 달러(희석주당 0.08달러)로 나타났습니다. 주문은 전년 대비 20.0% 감소하여 4억2470만 달러에 이르렀으며, 백로그는 7억4210만 달러입니다. 순매출은 5억2480만 달러로 제자리걸음을 걸었고, 조정된 EBITDA는 21.3% 감소하여 2620만 달러로 나타났습니다. 중고 기계 판매는 최근 12개월 동안 6억1750만 달러에 달했습니다. 회사는 미국의 선거 불확실성과 금리 우려로 인해 새로운 크레인에 대한 수요가 느려지면서 연간 조정 EBITDA가 가이던스의 하단에 위치할 것으로 예상하고 있습니다.

Manitowoc (NYSE: MTW) a annoncé une perte nette de 7,0 millions de dollars au troisième trimestre, soit 0,20 dollar par action diluée, avec une perte nette ajustée de 2,9 millions de dollars (0,08 dollar par action diluée). Les commandes ont diminué de 20,0 % par rapport à l'année précédente, atteignant 424,7 millions de dollars, tandis que le carnet de commandes s'élevait à 742,1 millions de dollars. Les ventes nettes sont restées stables à 524,8 millions de dollars, tandis que l'EBITDA ajusté a baissé de 21,3 % pour atteindre 26,2 millions de dollars. Les ventes de machines d'occasion non nouvelles ont atteint 617,5 millions de dollars au cours des douze derniers mois. L'entreprise s'attend à ce que l'EBITDA ajusté pour l'année entière soit à la limite inférieure des prévisions en raison d'une demande plus faible pour les nouvelles grues, en raison de l'incertitude liée aux élections américaines et des préoccupations concernant les taux d'intérêt.

Manitowoc (NYSE: MTW) meldete im dritten Quartal einen Nettoverlust von 7,0 Millionen Dollar, was 0,20 Dollar pro verwässerter Aktie entspricht, während der bereinigte Nettoverlust 2,9 Millionen Dollar (0,08 Dollar pro verwässerter Aktie) betrug. Die Aufträge gingen im Jahresvergleich um 20,0 % auf 424,7 Millionen Dollar zurück, während der Auftragsbestand bei 742,1 Millionen Dollar lag. Die Nettoumsätze blieben mit 524,8 Millionen Dollar stabil, während das bereinigte EBITDA um 21,3 % auf 26,2 Millionen Dollar fiel. Der Umsatz mit gebrauchten Maschinen betrug in den letzten zwölf Monaten 617,5 Millionen Dollar. Das Unternehmen erwartet, dass das bereinigte EBITDA für das Gesamtjahr am unteren Ende der Prognose liegen wird, aufgrund einer verlangsamten Nachfrage nach neuen Kränen im Zuge der unsicheren US-Wahlen und der Bedenken über die Zinssätze.

Positive
  • Non-new machine sales reached record $617.5 million TTM
  • Net sales maintained stable at $524.8 million year-over-year
Negative
  • Q3 net loss of $7.0 million ($0.20 per diluted share)
  • Orders decreased 20.0% year-over-year to $424.7 million
  • Adjusted EBITDA declined 21.3% year-over-year
  • Full-year adjusted EBITDA guidance lowered to low end of range

Insights

The Q3 results paint a concerning picture for Manitowoc. The company reported a $7.0 million net loss ($0.20 per share), with adjusted net loss at $2.9 million. Orders declined significantly by 20% year-over-year to $424.7 million, indicating weakening demand. The flat sales of $524.8 million and 21.3% drop in adjusted EBITDA to $26.2 million suggest operational challenges.

The bright spot is non-new machine sales reaching $617.5 million TTM, showing success in the aftermarket segment. However, new crane demand is soft due to macro uncertainties. Management's guidance revision to the lower end signals near-term headwinds, though long-term catalysts remain with infrastructure spending, Middle East activity and aging fleets.

MILWAUKEE--(BUSINESS WIRE)-- The Manitowoc Company, Inc. (NYSE: MTW) (the “Company” or “Manitowoc”) today reported a third-quarter net loss of $7.0 million, or $0.20 per diluted share. Third-quarter adjusted net loss(1) was $2.9 million, or $0.08 per diluted share.

Orders in the third quarter were $424.7 million, a 20.0% decrease from the prior year, resulting in backlog at the end of the third quarter of $742.1 million. Net sales in the third quarter were flat year-over-year at $524.8 million, and adjusted EBITDA(1) was $26.2 million, a decrease of 21.3% from the prior year.

“During the quarter, we made good progress on our CRANES+50 strategy; non-new machine sales reached a new high of $617.5 million for the trailing twelve-months. Demand, however, for new cranes slowed as customers await the outcome of the U.S. election and further interest rate cuts. Given the soft results in the third quarter, we are expecting our full year adjusted EBITDA to be at the low end of our guidance. Strengthening our balance sheet with a focus on working capital remains our top financial priority,” commented Aaron H. Ravenscroft, President and Chief Executive Officer of The Manitowoc Company, Inc.

“Looking longer term, we are optimistic as central banks continue to cut interest rates, monies from the Infrastructure and CHIPS bills begin to flow, activity in the Middle East remains strong, and crane fleets age to historic levels. As we continue to launch new machines and execute our CRANES+50 strategy, we are well positioned to capitalize on these trends,” concluded Ravenscroft.

Investor Conference Call

The Manitowoc Company will host a conference call for security analysts and institutional investors to discuss its third-quarter 2024 earnings results on Thursday, October 31, 2024, at 10:00 a.m. ET (9:00 a.m. CT). A live audio webcast of the call, along with the related presentation, will be available via webcast on the Manitowoc website at http://ir.manitowoc.com in the "Events & Presentations" section. A replay of the conference call will also be available at the same location on the website.

About The Manitowoc Company, Inc.

The Manitowoc Company was founded in 1902 and has over a 120-year tradition of providing high-quality, customer-focused products and support services to its markets. Headquartered in Milwaukee, Wisconsin, United States, Manitowoc is one of the world's leading providers of engineered lifting solutions. Manitowoc, through its wholly-owned subsidiaries, designs, manufactures, markets, distributes, and supports comprehensive product lines of mobile hydraulic cranes, lattice-boom crawler cranes, boom trucks, and tower cranes under the Aspen Equipment, Grove, Manitowoc, MGX Equipment Services, National Crane, Potain, and Shuttlelift brand names.

Footnote

(1)Adjusted net income (loss), adjusted diluted net income (loss) per share (“Adjusted DEPS”), EBITDA, adjusted EBITDA, adjusted operating income, adjusted return on invested capital ("Adjusted ROIC"), and free cash flows are financial measures that are not in accordance with U.S. GAAP. For definitions and a reconciliation to the most comparable U.S. GAAP numbers, please see the schedule of “Non-GAAP Financial Measures” at the end of this press release.

Forward-looking Statements

This press release includes “forward-looking statements” intended to qualify for the safe harbor from liability under the Private Securities Litigation Reform Act of 1995. Any statements contained in this press release that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current expectations of the management of the Company and are subject to uncertainty and changes in circumstances. Forward-looking statements include, without limitation, statements typically containing words such as “intends,” “expects,” “anticipates,” “targets,” “estimates,” and words of similar import. By their nature, forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results and developments to differ materially include, among others:

  • Macroeconomic conditions, including inflation, high interest rates and recessionary concerns, as well as continuing global supply chain constraints, labor constraints, logistics constraints and cost pressures such as changes in raw material and commodity costs, have had, and may continue to have, a negative impact on Manitowoc’s ability to convert backlog into revenue which could, and has, impacted its financial condition, cash flows, and results of operations (including future uncertain impacts);
  • actions of competitors;
  • changes in economic or industry conditions generally or in the markets served by Manitowoc;
  • geopolitical events, including the ongoing conflicts in Ukraine and in the Middle East, other political and economic conditions and risks and other geographic factors, has had and may continue to lead to market disruptions, including volatility in commodity prices (including oil and gas), raw material and component costs, energy prices, inflation, consumer behavior, supply chain, and credit and capital markets, and could result in the impairment of assets;
  • changes in customer demand, including changes in global demand for high-capacity lifting equipment, changes in demand for lifting equipment in emerging economies and changes in demand for used lifting equipment including changes in government approval and funding of projects;
  • the ability to convert backlog, orders and order activity into sales and the timing of those sales;
  • failure to comply with regulatory requirements related to the products and aftermarket services the Company sells;
  • the ability to capitalize on key strategic opportunities and the ability to implement Manitowoc’s long-term initiatives;
  • impairment of goodwill and/or intangible assets;
  • changes in revenues, margins and costs;
  • the ability to increase operational efficiencies across Manitowoc and to capitalize on those efficiencies;
  • the ability to generate cash and manage working capital consistent with Manitowoc’s stated goals;
  • work stoppages, labor negotiations, labor rates and labor costs;
  • the Company’s ability to attract and retain qualified personnel;
  • changes in the capital and financial markets;
  • the ability to complete and appropriately integrate acquisitions, strategic alliances, joint ventures or other significant transactions;
  • issues associated with the availability and viability of suppliers;
  • the ability to significantly improve profitability;
  • realization of anticipated earnings enhancements, cost savings, strategic options and other synergies, and the anticipated timing to realize those savings, synergies and options;
  • the ability to focus on customers, new technologies and innovation;
  • uncertainties associated with new product introductions, the successful development and market acceptance of new and innovative products that drive growth;
  • the replacement cycle of technologically obsolete products;
  • risks associated with high debt leverage;
  • foreign currency fluctuation and its impact on reported results;
  • the ability of Manitowoc's customers to receive financing;
  • risks associated with data security and technological systems and protections;
  • the ability to direct resources to those areas that will deliver the highest returns;
  • risks associated with manufacturing or design defects;
  • natural disasters, other weather events, pandemics and other public health crises disrupting commerce in one or more regions of the world;
  • issues relating to the ability to timely and effectively execute on manufacturing strategies, general efficiencies and capacity utilization of the Company’s facilities;
  • the ability to focus and capitalize on product and service quality and reliability;
  • issues associated with the quality of materials, components and products sourced from third parties and the ability to successfully resolve those issues;
  • issues related to workforce reductions and potential subsequent rehiring;
  • changes in laws throughout the world, including governmental regulations on climate change;
  • the inability to defend against potential infringement claims on intellectual property rights;
  • the ability to sell products and services through distributors and other third parties;
  • issues affecting the effective tax rate for the year;
  • acts of terrorism; and
  • other risks and factors detailed in Manitowoc's 2023 Annual Report on Form 10-K and its other filings with the United States Securities and Exchange Commission.

Manitowoc undertakes no obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise. Forward-looking statements only speak as of the date on which they are made. Information on the potential factors that could affect the Company's actual results of operations is included in its filings with the Securities and Exchange Commission, including but not limited to its Annual Report on Form 10-K for the fiscal year ended December 31, 2023.

THE MANITOWOC COMPANY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except per share and share amounts)

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Net sales

 

$

524.8

 

 

$

520.9

 

 

$

1,582.0

 

 

$

1,632.0

 

Cost of sales

 

 

437.2

 

 

 

424.1

 

 

 

1,302.2

 

 

 

1,305.9

 

Gross profit

 

 

87.6

 

 

 

96.8

 

 

 

279.8

 

 

 

326.1

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Engineering, selling and administrative expenses

 

 

78.9

 

 

 

77.4

 

 

 

238.6

 

 

 

240.1

 

Amortization of intangible assets

 

 

0.7

 

 

 

0.7

 

 

 

2.2

 

 

 

2.4

 

Restructuring expense

 

 

0.5

 

 

 

0.7

 

 

 

3.4

 

 

 

1.0

 

Total operating costs and expenses

 

 

80.1

 

 

 

78.8

 

 

 

244.2

 

 

 

243.5

 

Operating income

 

 

7.5

 

 

 

18.0

 

 

 

35.6

 

 

 

82.6

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(9.6

)

 

 

(8.4

)

 

 

(28.4

)

 

 

(25.5

)

Amortization of deferred financing fees

 

 

(0.3

)

 

 

(0.3

)

 

 

(1.0

)

 

 

(1.0

)

Other income (expense) - net

 

 

(4.9

)

 

 

1.1

 

 

 

(3.9

)

 

 

(10.0

)

Total other expense

 

 

(14.8

)

 

 

(7.6

)

 

 

(33.3

)

 

 

(36.5

)

Income (loss) before income taxes

 

 

(7.3

)

 

 

10.4

 

 

 

2.3

 

 

 

46.1

 

Provision (benefit) for income taxes

 

 

(0.3

)

 

 

 

 

 

3.2

 

 

 

(1.0

)

Net income (loss)

 

$

(7.0

)

 

$

10.4

 

 

$

(0.9

)

 

$

47.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Data and Share Amounts:

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income (loss) per common share

 

$

(0.20

)

 

$

0.30

 

 

$

(0.03

)

 

$

1.34

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted net income (loss) per common share

 

$

(0.20

)

 

$

0.29

 

 

$

(0.03

)

 

$

1.31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - basic

 

 

35,123,015

 

 

 

35,080,037

 

 

 

35,251,847

 

 

 

35,095,211

 

Weighted average shares outstanding - diluted

 

 

35,123,015

 

 

 

35,787,704

 

 

 

35,251,847

 

 

 

35,836,672

 

THE MANITOWOC COMPANY, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions, except par value and share amounts)

 

 

 

September 30, 2024

 

 

December 31, 2023

 

Assets

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

22.9

 

 

$

34.4

 

Accounts receivable, less allowances of $6.0 and $6.1, respectively

 

 

272.6

 

 

 

278.8

 

Inventories — net

 

 

769.9

 

 

 

666.5

 

Other current assets

 

 

38.6

 

 

 

53.3

 

Total current assets

 

 

1,104.0

 

 

 

1,033.0

 

 

 

 

 

 

 

 

Property, plant and equipment — net

 

 

366.0

 

 

 

366.1

 

Operating lease right-of-use assets

 

 

57.4

 

 

 

59.7

 

Goodwill

 

 

80.0

 

 

 

79.6

 

Other intangible assets — net

 

 

123.8

 

 

 

125.6

 

Other non-current assets

 

 

45.5

 

 

 

42.7

 

Total assets

 

$

1,776.7

 

 

$

1,706.7

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$

445.6

 

 

$

457.4

 

Customer advances

 

 

17.6

 

 

 

19.2

 

Short-term borrowings and current portion of long-term debt

 

 

40.5

 

 

 

13.4

 

Product warranties

 

 

38.5

 

 

 

47.1

 

Other liabilities

 

 

18.9

 

 

 

26.2

 

Total current liabilities

 

 

561.1

 

 

 

563.3

 

Non-Current Liabilities:

 

 

 

 

 

 

Long-term debt

 

 

426.7

 

 

 

358.7

 

Operating lease liabilities

 

 

44.5

 

 

 

47.2

 

Deferred income taxes

 

 

7.6

 

 

 

7.5

 

Pension obligations

 

 

51.6

 

 

 

55.8

 

Postretirement health and other benefit obligations

 

 

5.3

 

 

 

5.6

 

Long-term deferred revenue

 

 

21.0

 

 

 

24.1

 

Other non-current liabilities

 

 

51.3

 

 

 

41.2

 

Total non-current liabilities

 

 

608.0

 

 

 

540.1

 

Stockholders' Equity:

 

 

 

 

 

 

Preferred stock (authorized 3,500,000 shares of $.01 par value; none outstanding)

 

 

 

 

 

 

Common stock (75,000,000 shares authorized, 40,793,983 shares issued, 35,126,894
and 35,094,993 shares outstanding, respectively)

 

 

0.4

 

 

 

0.4

 

Additional paid-in capital

 

 

612.4

 

 

 

613.1

 

Accumulated other comprehensive loss

 

 

(80.6

)

 

 

(86.4

)

Retained earnings

 

 

142.6

 

 

 

143.5

 

Treasury stock, at cost (5,667,089 and 5,698,990 shares, respectively)

 

 

(67.2

)

 

 

(67.3

)

Total stockholders' equity

 

 

607.6

 

 

 

603.3

 

Total liabilities and stockholders' equity

 

$

1,776.7

 

 

$

1,706.7

 

THE MANITOWOC COMPANY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Cash Flows from Operating Activities:

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(7.0

)

 

$

10.4

 

 

$

(0.9

)

 

$

47.1

 

Adjustments to reconcile net income (loss) to cash provided
by (used for) operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation expense

 

 

14.9

 

 

 

13.7

 

 

 

44.2

 

 

 

41.8

 

Amortization of intangible assets

 

 

0.7

 

 

 

0.7

 

 

 

2.2

 

 

 

2.4

 

Stock-based compensation expense

 

 

2.4

 

 

 

2.4

 

 

 

8.0

 

 

 

7.8

 

Amortization of deferred financing fees

 

 

0.3

 

 

 

0.3

 

 

 

1.0

 

 

 

1.0

 

Loss on debt extinguishment

 

 

1.1

 

 

 

 

 

 

1.1

 

 

 

 

Loss (gain) on sale of property, plant and equipment

 

 

(0.4

)

 

 

0.2

 

 

 

(0.1

)

 

 

 

Deferred income tax benefit

 

 

 

 

 

 

 

 

 

 

 

(14.0

)

Loss on foreign currency translation adjustments

 

 

 

 

 

 

 

 

 

 

 

9.3

 

Changes in operating assets and liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(11.0

)

 

 

18.6

 

 

 

5.9

 

 

 

11.5

 

Inventories

 

 

1.0

 

 

 

(6.9

)

 

 

(103.2

)

 

 

(114.3

)

Notes receivable

 

 

1.0

 

 

 

1.9

 

 

 

3.1

 

 

 

5.8

 

Other assets

 

 

1.2

 

 

 

(2.7

)

 

 

11.2

 

 

 

5.2

 

Accounts payable

 

 

(32.9

)

 

 

(34.4

)

 

 

(0.6

)

 

 

(14.9

)

Accrued expenses and other liabilities

 

 

(14.9

)

 

 

22.1

 

 

 

(35.1

)

 

 

34.5

 

Net cash provided by (used for) operating activities

 

 

(43.6

)

 

 

26.3

 

 

 

(63.2

)

 

 

23.2

 

Cash Flows from Investing Activities:

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(9.3

)

 

 

(23.6

)

 

 

(34.4

)

 

 

(59.9

)

Proceeds from sale of fixed assets

 

 

1.8

 

 

 

0.2

 

 

 

5.3

 

 

 

5.3

 

Net cash used for investing activities

 

 

(7.5

)

 

 

(23.4

)

 

 

(29.1

)

 

 

(54.6

)

Cash Flows from Financing Activities:

 

 

 

 

 

 

 

 

 

 

 

 

Payments on revolving credit facility

 

 

 

 

 

 

 

 

 

 

 

(10.0

)

Proceeds from revolving credit facility

 

 

19.9

 

 

 

(12.0

)

 

 

67.4

 

 

 

 

Payments on long-term debt

 

 

300.0

 

 

 

 

 

 

300.00

 

 

 

 

Proceeds from long-term debt

 

 

(300.0

)

 

 

 

 

 

(300.00

)

 

 

 

Proceeds from other debt - net

 

 

22.1

 

 

 

23.8

 

 

 

32.2

 

 

 

22.6

 

Debt issuance costs

 

 

(5.5

)

 

 

 

 

 

(6.2

)

 

 

 

Exercise of stock options

 

 

 

 

 

 

 

 

 

 

 

0.3

 

Common stock repurchases

 

 

 

 

 

 

 

 

(5.7

)

 

 

(5.5

)

Other financing activities

 

 

(1.2

)

 

 

 

 

 

(6.7

)

 

 

 

Net cash provided by financing activities

 

 

35.3

 

 

 

11.8

 

 

 

81.0

 

 

 

7.4

 

Effect of exchange rate changes on cash and cash equivalents

 

 

0.6

 

 

 

(0.6

)

 

 

(0.2

)

 

 

(0.4

)

Net increase (decrease) in cash and cash equivalents

 

 

(15.2

)

 

 

14.1

 

 

 

(11.5

)

 

 

(24.4

)

Cash and cash equivalents at beginning of period

 

 

38.1

 

 

 

25.9

 

 

 

34.4

 

 

 

64.4

 

Cash and cash equivalents at end of period

 

$

22.9

 

 

$

40.0

 

 

$

22.9

 

 

$

40.0

 

Non-GAAP Financial Measures

Adjusted net income (loss), Adjusted DEPS, EBITDA, adjusted EBITDA, adjusted operating income, Adjusted ROIC, and free cash flows are financial measures that are not in accordance with U.S. GAAP. Manitowoc believes these non-GAAP financial measures provide important supplemental information to both management and investors regarding financial and business trends used in assessing its results of operations. Manitowoc believes excluding specified items provides a more meaningful comparison to the corresponding reporting periods and internal budgets and forecasts, assists investors in performing analysis that is consistent with financial models developed by investors and research analysts, provides management with a more relevant measure of operating performance, and is more useful in assessing management performance.

Adjusted Net Income (Loss) and Adjusted DEPS

The Company defines adjusted net income (loss) as net income (loss) plus the addback or subtraction of restructuring and other non-recurring items. Adjusted DEPS is defined as adjusted net income (loss) divided by diluted weighted average shares outstanding. Diluted weighted average common shares outstanding are adjusted for the effect of dilutive stock awards when there is net income (loss) on an adjusted basis, as applicable. The reconciliation of net income (loss) and diluted net income (loss) per share to adjusted net income (loss) and Adjusted DEPS for the three and nine months ended September 30, 2024 and 2023 are summarized as follows. All dollar amounts are in millions, except per share data and share amounts.

 

 

Three Months Ended
September 30,

 

 

 

2024

 

 

2023

 

 

 

As reported

 

 

Adjustments

 

 

Adjusted

 

 

As reported

 

 

Adjustments

 

 

Adjusted

 

Gross profit

 

$

87.6

 

 

$

 

 

$

87.6

 

 

$

96.8

 

 

$

 

 

$

96.8

 

Engineering, selling and administrative
expenses (1)

 

 

(78.9

)

 

 

2.6

 

 

 

(76.3

)

 

 

(77.4

)

 

 

0.2

 

 

 

(77.2

)

Amortization of intangible assets

 

 

(0.7

)

 

 

 

 

 

(0.7

)

 

 

(0.7

)

 

 

 

 

 

(0.7

)

Restructuring expense (2)

 

 

(0.5

)

 

 

0.5

 

 

 

 

 

 

(0.7

)

 

 

0.7

 

 

 

 

Operating income

 

 

7.5

 

 

 

3.1

 

 

 

10.6

 

 

 

18.0

 

 

 

0.9

 

 

 

18.9

 

Interest expense

 

 

(9.6

)

 

 

 

 

 

(9.6

)

 

 

(8.4

)

 

 

 

 

 

(8.4

)

Amortization of deferred financing fees

 

 

(0.3

)

 

 

 

 

 

(0.3

)

 

 

(0.3

)

 

 

 

 

 

(0.3

)

Other income (expense) - net (3)

 

 

(4.9

)

 

 

1.1

 

 

 

(3.8

)

 

 

1.1

 

 

 

 

 

 

1.1

 

Income (loss) before income taxes

 

 

(7.3

)

 

 

4.2

 

 

 

(3.1

)

 

 

10.4

 

 

 

0.9

 

 

 

11.3

 

(Provision) benefit for income taxes (4)

 

 

0.3

 

 

 

(0.1

)

 

 

0.2

 

 

 

 

 

 

(3.3

)

 

 

(3.3

)

Net income (loss)

 

$

(7.0

)

 

$

4.1

 

 

$

(2.9

)

 

$

10.4

 

 

$

(2.4

)

 

$

8.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted weighted average common shares outstanding

 

 

35,123,015

 

 

 

 

 

 

35,123,015

 

 

 

35,787,704

 

 

 

 

 

 

35,787,704

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted net income (loss) per share

 

$

(0.20

)

 

 

 

 

$

(0.08

)

 

$

0.29

 

 

 

 

 

$

0.22

 

(1)

The adjustment in 2024 represents $2.6 million of costs associated with a legal matter with the U.S. EPA. The adjustment in 2023 represents $0.2 million of one-time costs.

(2)

The adjustment in 2024 and 2023 represents the addback of restructuring expense.

(3)

The adjustment in 2024 represents $1.1 million of non-cash losses associated with the refinancing of the Company’s $300.0 million senior secured second lien notes (the “2026 Notes”).

(4)

The adjustment in 2024 represents the net loss tax impacts of items (1), (2), and (3). The adjustment in 2023 represents the net income tax impact of items (1) and (2) and the removal of a $3.2 million benefit from the favorable settlement of a tax matter.

 

 

Nine Months Ended
September 30,

 

 

 

2024

 

 

2023

 

 

 

As reported

 

 

Adjustments

 

 

Adjusted

 

 

As reported

 

 

Adjustments

 

 

Adjusted

 

Gross profit

 

$

279.8

 

 

$

 

 

$

279.8

 

 

$

326.1

 

 

$

 

 

$

326.1

 

Engineering, selling and administrative
expenses (1)

 

 

(238.6

)

 

 

8.1

 

 

 

(230.5

)

 

 

(240.1

)

 

 

11.0

 

 

 

(229.1

)

Amortization of intangible assets

 

 

(2.2

)

 

 

 

 

 

(2.2

)

 

 

(2.4

)

 

 

 

 

 

(2.4

)

Restructuring expense (2)

 

 

(3.4

)

 

 

3.4

 

 

 

 

 

 

(1.0

)

 

 

1.0

 

 

 

 

Operating income

 

 

35.6

 

 

 

11.5

 

 

 

47.1

 

 

 

82.6

 

 

 

12.0

 

 

 

94.6

 

Interest expense

 

 

(28.4

)

 

 

 

 

 

(28.4

)

 

 

(25.5

)

 

 

 

 

 

(25.5

)

Amortization of deferred financing fees

 

 

(1.0

)

 

 

 

 

 

(1.0

)

 

 

(1.0

)

 

 

 

 

 

(1.0

)

Other income (expense) - net (3)

 

 

(3.9

)

 

 

1.1

 

 

 

(2.8

)

 

 

(10.0

)

 

 

9.3

 

 

 

(0.7

)

Income before income taxes

 

 

2.3

 

 

 

12.6

 

 

 

14.9

 

 

 

46.1

 

 

 

21.3

 

 

 

67.4

 

(Provision) benefit for income taxes (4)

 

 

(3.2

)

 

 

(0.7

)

 

 

(3.9

)

 

 

1.0

 

 

 

(17.3

)

 

 

(16.3

)

Net income (loss)

 

$

(0.9

)

 

$

11.9

 

 

$

11.0

 

 

$

47.1

 

 

$

4.0

 

 

$

51.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted weighted average common shares outstanding

 

 

35,251,847

 

 

 

 

 

 

35,750,656

 

 

 

35,836,672

 

 

 

 

 

 

35,836,672

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted net income (loss) per share

 

$

(0.03

)

 

 

 

 

$

0.31

 

 

$

1.31

 

 

 

 

 

$

1.43

 

(1)

The adjustment in 2024 represents $7.9 million of costs associated with a legal matter with the U.S. EPA and $0.2 million of one-time costs. The adjustment in 2023 represents $10.8 million of costs associated with a legal matter with the U.S. EPA and $0.2 million of one-time costs.

(2)

The adjustment in 2024 and 2023 represents the addback of restructuring expense.

(3)

The adjustment in 2024 represents $1.1 million of non-cash losses associated with the refinancing of the Company’s 2026 Notes. The adjustment in 2023 represents the write-off of $9.3 million of non-cash foreign currency translation adjustments from the curtailment of operations in Russia.

(4)

The adjustment in 2024 represents the net loss tax impacts of items (1), (2), and (3). The adjustment in 2023 represents the net income tax impact of items (1), (2), and (3), the removal of a $13.9 million benefit from the release of a valuation allowance, and the removal of a $3.2 million benefit from the favorable settlement of a tax matter.

Adjusted ROIC

The Company defines Adjusted ROIC as adjusted net operating profit after tax (“Adjusted NOPAT”) for the trailing twelve-months ended divided by the five-quarter average of invested capital. Adjusted NOPAT is calculated for each quarter by taking operating income plus the addback of amortization of intangible assets and the addback or subtraction of restructuring expenses, other non-recurring items - net, and provision for income taxes, which is determined using a 15% tax rate. Invested capital is defined as net total assets less cash and cash equivalents and income tax assets - net plus short-term and long-term debt. Income taxes are defined as income tax payables/receivables, net deferred tax assets/liabilities, and uncertain tax positions.

The Company’s Adjusted ROIC as of September 30, 2024 was 6.2%. Below is the calculation of Adjusted ROIC as of September 30, 2024.

 

Three Months Ended

 

 

 

 

 

September 30,
2024

 

 

June 30,
2024

 

 

March 31,
2024

 

 

December 31,
2023

 

 

Trailing
Twelve
Months

 

Operating income

$

7.5

 

 

$

12.9

 

 

$

15.2

 

 

$

9.8

 

 

$

45.4

 

Amortization of intangible assets

 

0.7

 

 

 

0.8

 

 

 

0.7

 

 

 

0.8

 

 

 

3.0

 

Restructuring expense

 

0.5

 

 

 

2.3

 

 

 

0.6

 

 

 

0.3

 

 

 

3.7

 

Other non-recurring items - net1

 

2.6

 

 

 

5.4

 

 

 

0.1

 

 

 

10.8

 

 

 

18.9

 

Adjusted operating income

 

11.3

 

 

 

21.4

 

 

 

16.6

 

 

 

21.7

 

 

 

71.0

 

Provision for income taxes

 

(1.7

)

 

 

(3.2

)

 

 

(2.5

)

 

 

(3.3

)

 

 

(10.7

)

Adjusted NOPAT

$

9.6

 

 

$

18.2

 

 

$

14.1

 

 

$

18.4

 

 

$

60.4

 

 

September 30,
2024

 

 

June 30,
2024

 

 

March 31,
2024

 

 

December 31,
2023

 

 

September 30,
2023

 

 

5-Quarter
Average

 

Total assets

$

1,776.7

 

 

$

1,747.9

 

 

$

1,780.6

 

 

$

1,706.7

 

 

$

1,692.2

 

 

$

1,740.8

 

Total liabilities

 

(1,169.1

)

 

 

(1,155.6

)

 

 

(1,184.6

)

 

 

(1,103.4

)

 

 

(1,119.2

)

 

 

(1,146.4

)

Net total assets

 

607.6

 

 

 

592.3

 

 

 

596.0

 

 

 

603.3

 

 

 

573.0

 

 

 

594.4

 

Cash and cash equivalents

 

(22.9

)

 

 

(38.1

)

 

 

(31.5

)

 

 

(34.4

)

 

 

(40.0

)

 

 

(33.4

)

Short-term borrowings and current portion of long-term debt

 

40.5

 

 

 

21.4

 

 

 

42.5

 

 

 

13.4

 

 

 

30.3

 

 

 

29.6

 

Long-term debt

 

426.7

 

 

 

406.3

 

 

 

372.7

 

 

 

358.7

 

 

 

368.5

 

 

 

386.6

 

Income tax assets - net

 

(10.1

)

 

 

(4.4

)

 

 

(3.4

)

 

 

(2.6

)

 

 

(4.3

)

 

 

(4.9

)

Invested capital

$

1,041.8

 

 

$

977.5

 

 

$

976.3

 

 

$

938.4

 

 

$

927.5

 

 

$

972.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted ROIC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6.2

%

(1)

Other non-recurring items - net for the three months ended September 30, 2024 relate to $2.6 million of costs associated with a legal matter with the U.S. EPA. Other non-recurring items – net for the trailing twelve months relate to $18.3 million of costs associated with a legal matter with the U.S. EPA and $0.6 million of one-time costs. Refer to the Company’s previously filed Form 10-K and Form 10-Qs for a description of other non-recurring items - net for the three months ended June 30, 2024, March 31, 2024, and December 31, 2023.

Free Cash Flows

The Company defines free cash flows as net cash provided by (used for) operating activities less cash outflow from investment in capital expenditures. The reconciliation of net cash provided by (used for) operating activities to free cash flows for the three and nine months ended September 30, 2024 and 2023 are summarized as follows. All dollar amounts are in millions.

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

 

2024

 

2023

 

2024

 

2023

Net cash provided by (used for) operating activities

 

$

(43.6

)

 

$

26.3

 

 

$

(63.2

)

 

$

23.2

 

Capital expenditures

 

 

(9.3

)

 

 

(23.6

)

 

 

(34.4

)

 

 

(59.9

)

Free cash flows

 

$

(52.9

)

 

$

2.7

 

 

$

(97.6

)

 

$

(36.7

)

EBITDA and Adjusted EBITDA

The Company defines EBITDA as net income (loss) before interest, taxes, depreciation, and amortization. The Company defines adjusted EBITDA as EBITDA plus the addback or subtraction of restructuring expense, other (income) expense - net, and other non-recurring items - net. The reconciliation of net income (loss) to EBITDA, and further to adjusted EBITDA for the three and nine months ended September 30, 2024 and 2023 and trailing twelve months are summarized as follows. All dollar amounts are in millions.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

Trailing
Twelve

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

Months

 

Net income (loss)

$

(7.0

)

 

$

10.4

 

 

$

(0.9

)

 

$

47.1

 

 

$

(8.8

)

Interest expense and amortization of deferred
financing fees

 

9.9

 

 

 

8.7

 

 

 

29.4

 

 

 

26.5

 

 

 

38.1

 

Provision (benefit) for income taxes

 

(0.3

)

 

 

 

 

 

3.2

 

 

 

(1.0

)

 

 

9.2

 

Depreciation expense

 

14.9

 

 

 

13.7

 

 

 

44.2

 

 

 

41.8

 

 

 

59.0

 

Amortization of intangible assets

 

0.7

 

 

 

0.7

 

 

 

2.2

 

 

 

2.4

 

 

 

3.0

 

EBITDA

 

18.2

 

 

 

33.5

 

 

 

78.1

 

 

 

116.8

 

 

 

100.5

 

Restructuring expense

 

0.5

 

 

 

0.7

 

 

 

3.4

 

 

 

1.0

 

 

 

3.7

 

Other non-recurring items - net (1)

 

2.6

 

 

 

0.2

 

 

 

8.1

 

 

 

11.0

 

 

 

18.9

 

Other (income) expense - net (2)

 

4.9

 

 

 

(1.1

)

 

 

3.9

 

 

 

10.0

 

 

 

6.9

 

Adjusted EBITDA

$

26.2

 

 

$

33.3

 

 

$

93.5

 

 

$

138.8

 

 

$

130.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA margin percentage

 

5.0

%

 

 

6.4

%

 

 

5.9

%

 

 

8.5

%

 

 

6.0

%

(1)

Other non-recurring items - net for the three months ended September 30, 2024 relate to $2.6 million of costs associated with a legal matter with the U.S. EPA. Other non-recurring items - net for the nine months ended September 30, 2024 relate to $7.9 million of costs associated with a legal matter with the U.S. EPA and $0.2 million of one-time costs. Other non-recurring items - net for the three months ended September 30, 2023 relate to $0.2 million of one-time costs. Other non-recurring items - net for the nine months ended September 30, 2023 relate to $10.8 million of costs associated with a legal matter with the U.S. EPA and $0.2 million of one-time costs. Other non-recurring items – net for the trailing twelve months relate to $18.3 million of costs associated with a legal matter with the U.S. EPA and $0.6 million of one-time costs.

(2)

Other (income) expense - net includes net foreign currency gains (losses), other components of net periodic pension costs, and other items in the three, nine, and trailing twelve months ended September 30, 2024 and the three and nine months ended September 30, 2023. Other expense – net for the nine and trailing twelve months ended September 30, 2023 includes a $9.3 million write-off of non-cash foreign currency translation adjustments from the curtailment of operations in Russia.

 

Ion Warner

SVP, Marketing and Investor Relations

+1 414-760-4805

Source: The Manitowoc Company, Inc.

FAQ

What was Manitowoc's (MTW) Q3 2024 net loss?

Manitowoc reported a Q3 2024 net loss of $7.0 million, or $0.20 per diluted share.

How much did Manitowoc's (MTW) orders decline in Q3 2024?

Manitowoc's orders decreased by 20.0% year-over-year to $424.7 million in Q3 2024.

What was Manitowoc's (MTW) Q3 2024 backlog?

Manitowoc's backlog at the end of Q3 2024 was $742.1 million.

How did Manitowoc's (MTW) non-new machine sales perform in Q3 2024?

Manitowoc's non-new machine sales reached a new high of $617.5 million for the trailing twelve months.

The Manitowoc Company, Inc.

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